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URS Holdings has the following expected dividends: $1.11 in one year and $1.18 in two years. After that, its dividends are expected to grow at
URS Holdings has the following expected dividends: $1.11 in one year and $1.18 in two years. After that, its dividends are expected to grow at 4% per year forever (so that year 3 's dividend will be 4% more than $1.18 and so on). If its equity cost of capital is 7%, what is the value of the stock? Round your answer to two decimal places. Your Answer: Answer Hide hint for Question 15 You can apply the constant growth model to year 2 price (P2) since dividends will grow at a constant rate after year 2. Then discount Div1, Div2, and P2 to get today's price (PO)
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